Rising Health Awareness Has Increased TheConsumption Of Tea In The Global Coffee And Tea Market
23 Mar, 2020
The global coffee and tea market is expected to grow from $161,740 million in 2019 to $228,781 million in 2022 at acompound annual growth rate (CAGR) of 12.2%.Sedentary lifestyles and rising obesity levels have encouraged consumers to be more conscious of their health and wellness.Of late, coffee and tea manufacturers have launched various products with healthy ingredients and supplements that can provide nutritional benefits. Tea and coffee have been claimed to help the immune system to protect against liver disease,cancer, dementia, Alzheimer’s disease, lower the risk of type 2 diabetes, and help improve insulin secretion and sensitivity.Coffee and tea producers are launching a wide range of products with different herbs and spices such as cardamom,cinnamon, cloves, holy basil, turmeric, cumin, ginger, chamomile, ashwagandha, brahmi, ginseng and lemon. Anotherprominent trend in the coffee and tea market for health and wellness is the introduction of probiotics and prebiotics tea.Around 1% of the tea launched between June 2017 to June 2018 contained probiotics.
Rising health awareness is expected to drive the global coffee and tea market going forward. Therehas been an increasing preference for green and specialty tea worldwide, owing to the health benefits they propose. It isexpected that the rising obesity population, increasing awareness on lifestyle disorders, and increasing awareness aboutdiet and fitness will increase the consumption of green tea globally. According to the Food And Agriculture Organization (FAO) of theUnited Nations’ 2018 report, the global production of green tea is expected to grow at an annual rate of 7.5%, reaching 3.6 milliontonnes in 2027. Rising health awareness about green and specialty tea is expected to support the coffee and teamarket in the forecast period.
Increasing demand for ready-to-drink (RTD) beverages is also expected to drive the global coffee and tea market in the forecast period. RTD is a single-use packaged beverage that is ready for immediateconsumption at the time of purchase. RTD drinks are gaining popularity among working adults due to their clean label andfunctionality. The introduction of new flavors in the range of RTD tea and coffee, and the ease of carrying and convenience areexpected to boost the demand for RTD tea and coffee. It is expected that the global RTD tea and coffee market will reach $116.1billion by 2024 at a CAGR of 5.6%, while the global consumption of RTD tea alone is expected to reach 50 billion liters by2021, at a CAGR of 5.3%. Increasing demand for RTD beverages, including RTD coffee and tea, is expected to drive thecoffee and tea market going forward.